(Washington Composite Electric) Voller, director of the Federal Reserve, said that the Fed must adhere to the implementation of interest rate hikes until next year to ensure that inflation can drop to 2%of the goal.
Voller said at a meeting in Vienna on Friday (September 9) that it takes time to lower the inflation. He supports the policy meeting at a policy meeting on September 20th to 21st.
He believes that the US employment market has performed strongly, and the US economy has not fallen into a decline, which allows the Fed to continue to take radical measures.
He said: "I expected to reduce the inflation rate to the 2%target we set." He predicts that the Fed's tightening policy will continue until 2023.
Waller's remarks are similar to the hawks recently issued by other Federal Reserve officials.
Fed Chairman Powell emphasized on Thursday that decision makers must take action "vigorously" to prevent the US economy from undergoing the pain of soaring inflation in 1970 and 1980.
The U.S. inflation rate has reached the highest level in 40 years this year.Although the economy has occurred in two quarters, the low unemployment rate and strong expenditure show that economic activities have not slowed down significantly.The negative growth in consecutive quarters is generally regarded as a sign of economic recession.
Waller said: "The concerns about the decline of the economy in the first half of this year have faded, and the strong US labor market has enabled us to actively respond to inflation flexibly."
Since this year, the Federal Reserve has raised interest rates four times, including 75 basis points on two hikes.It is estimated that the Federal Reserve Decision Conference in September will raise interest rates for the third time.
If the Fed really raises 75 basis points, this will be the Federal Reserve's three consecutive times in a row, which will increase the benchmark interest rate of the United States to more than 3 %, which is a high point since 2008.
Voller pointed out that how much decision maker will increase the benchmark interest rate, it will depend on the inflation data that is about to be released, but "I believe that the policy decision of the next meeting will be straightforward."
He warns that even some encouraging signs show that the price pressure is ease, "it is too early to say whether inflation is meaningful and continued to decline."
He said: "This is a struggle that we cannot and will not give up."
Waller said that even if the price of commodities is at a moderate level, it is unclear when the rise in service costs slows down, and the rising rent will continue to push up the inflation.
